AN ACT TO AMEND TITLE 14, CHAPTER 19, DELAWARE CODE IN RESPECT TO AUTHORIZING SCHOOL DISTRICTS TO BORROW MONEY IN ANTICIPATION OF TAXES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Title 14, Chapter 19, Delaware Code, is amended by adding the following new section thereto :
§ 1923. Borrowing in anticipation of taxes
School districts may borrow money in anticipation of local school taxes, as imposed by this Chapter, to an amount not to exceed 25% of such annual taxes, which shall be pledged for the payment of such loan or loans, and issue revenue anticipation notes or certificates, executed in accordance with the provisions of §2110 of this Title. Such revenue anticipation notes or certificates shall mature and be payable with 90 days of the date such money is borrowed. They shall be redeemable at the principal office of the Farmers Bank of the County in which the school district is situated. The faith and credit of the school district is pledged for the payment of the principal and interest of the revenue anticipation notes or certificates of indebtedness which shall be exempt from taxation for any purpose by this State. All expense incident to the advertising, preparing, issuing and delivering of the revenue anticipation notes or certificates, and principals and interest thereon shall be paid by the school District. No such borrowing shall constitute an increase of bonded debt within the meaning of §2106 of this Title.
Approved July 10, 1967.